Don’t miss the latest developments in business and finance.

Moody's, S&P settle lawsuits over SIV investments

Image
Reuters
Last Updated : Apr 27 2013 | 4:50 AM IST

REUTERS - Settlements have been reached in two long-running lawsuits seeking to hold Moody's Investors Service and Standard & Poor's responsible for misleading investors about the safety of risky debt vehicles that they rated.

The lawsuits had accused Moody's and S&P of negligent misrepresentation over their activities regarding the Cheyne and Rhinebridge structured investment vehicles.

An S&P spokesman confirmed on Friday that the cases have settled. Moody's and Morgan Stanley , which marketed both SIVs and helped structure the Rhinebridge SIV, have also settled, a person familiar with the matter said on Friday.

Moody's and Morgan Stanley did not immediately respond to requests for comment.

(Reporting by Nate Raymond and Jonathan Stempel in New York; Editing by Gary Hill)

Also Read

First Published: Apr 27 2013 | 4:37 AM IST

Next Story